Sometimes an Investor in a Project wants to contract with another company to provide most or all of the production services necessary to produce a Project. By contracting with another company, the Investor may be seeking to protect herself/himself from any liability arising from the production. Since the production services company is usually a separate legal entity, the Investor should not be liable if, for instance, a cast or crew member is hurt on the set. After the Project has been produced, the Agreement often provides that all Rights to the Project are assigned back to the Investor. The service company is only entitled to be reimbursed for the cost of production.
While the Investor may want to insulate herself/himself from liability, the Investor may well want to maintain tight fiscal and creative control over the Project. It is not unusual for the Investor to insist that she/he must approve the budget, cash flow schedule and all major creative decisions. Contractually, the Investor may have “Takeover Rights” which permit her/him taking over production of the Project under certain conditions. In this case, the service company is being used to insulate the Investor from liability.
This Contract is drafted in plain English that is easy to read and comprehend. This is a eleven page, sixteen clause legal Agreement. The Contract may be filled in on your computer or printed out and filled in later.
We regularly receive feedback that we have successfully drafted our filmmaker contracts to be as complete as possible for all legal situations. However, should you experience a unique personal situation requiring the drafting of a special clause, please contact us at your convenience. Otherwise, you may be obliged to find a local entertainment lawyer experienced in the film making industry who will draft any and all other clauses for your Project’s unique situation or circumstance.
This Contract is part of the Investor’s Deal.
$99.00
Financier Name: _______________________________________________
(Print Names)
Service Company Official Name: -__________________________________
Service Company: ______________________________________________
Project Name: __________________________________________________
Project Genre: _________________________________________________
(film, music video, stage production, game show, etc)
WHEREAS, Financier owns the right to produce and exploit the above named Project, and
WHEREAS, Financier has requested Service Company to supervise the production of the Project in ______________________________ (state, province, country) , and
WHEREAS, to that end, Service Company has arranged for the directing services of ____________________________, and the producing services of ______________________________, all in accordance with a mutually approved budget and a production schedule which have been previously approved by Financier and Service Company; and
WHEREAS, Financier desires to finance and arrange for the production of the Project, and Service Company desires to furnish the services set forth herein on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the promises and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:
1. Production of the Project
(a) Subject to the terms and conditions hereinafter set forth, Financier agrees to furnish or cause a third party to furnish to Service Company, on a mutually approved cash flow schedule (“Cash Flow Schedule”), the amount of financing which Service Company represents will be required to finance the production of the Project, and Service Company shall use all sums advanced hereunder for the sole purpose of furnishing the production services for the Project in accordance with the approved screenplay, budget and production schedule, subject only to deviations therefrom caused by the exigencies of production and approved in writing by Financier. All obligations of Financier shall be subject to Financier first obtaining a completion bond from a reputable company, which in form and substance shall be subject to Financier’s approval. All sums advanced hereunder shall be deposited in a production account that has been designated, approved and controlled by Financier, and until such funds have been expended in the production of the Project such . . . (Continued)
